Leveraged buyouts, growth capital, angel investments, and seed funding—these private transactions take place, largely out of the public’s eye, not only in Connecticut or Silicon Valley, but also in Beijing, Shenzhen, and Shanghai.

In 2016, China’s private equity (PE) and venture capital (VC) firms raised over $70 billion, more than 20% of total such funding globally. At the same time, these firms also deployed capital to the tune of $223 billion, accounting for more than 70% of global PE/VC investments.

As late comers, these Chinese firms have rapidly grown into formidable financiers. Most Chinese PE firms are particularly interested in products and services that can be commercialized and scaled up quickly in China. They tend to invest in areas that align with China’s shift to a more consumer-driven economy. Meanwhile, Chinese VCs have been active players globally, particularly in Silicon Valley. They have focused on areas such as artificial intelligence, Internet of Things, and electric vehicles.

Hony Capital

Company Overview

COMPANY DESCRIPTION

Hony Capital specializes in equity investments and asset management. The firm’s investments are centered on two macro themes: China’s urbanization and its shift to a consumption-driven economy. It has invested in over 100 companies across the machinery, healthcare, consumer products, media and entertainment, and financial services sectors. Its assets are composed of both domestic and international investors, including Goldman Sachs, Temasek, and European and US pension funds.

Global Presence

US FDI EXPERIENCE

In March 2016, Hony Capital, along with Legend Holdings, co-led a $430 million investment in WeWork, a New York- based startup and office space leasing company. In March 2014, Hony Capital, along with Gigi Pritzker and TPG Capital, co-led a $1 billion investment in STX Entertainment to establish a film studio. The studio is expected to finance, produce, and self-distribute 8 to 10 “star-driven” theatrical films each year for global markets.

In July 2014, Hony Capital led a $50 million investment in cloud and mobile commerce company, Deem, to further expand globally and drive growth.